Spain's Ibex-35 stock index closed its third consecutive session lower on Tuesday, after weak manufacturing data from Europe and China cooled investors' enthusiasm for a possible soft landing of the economy and the end of rate hikes.

With the corporate results season practically over in Spain, doubts about the macroeconomic scenario once again agitated the nerves of stock market traders, who, after fattening their portfolio in July, opted to take profits.

China's manufacturing activity fell for the fourth consecutive month in July, reinforcing the need for further stimulus to boost domestic demand.

From the eurozone the news was not encouraging either, with the final Purchasing Managers' Index (PMI) falling to its lowest level since May 2020, matching the preliminary reading.

"Eurozone activity is slowing, particularly in Germany, but we have an ECB still signaling the need to continue raising interest rates. It's not a great outlook for the market," said Stuart Cole, chief macroeconomist at Equiti Capital.

"And the expected boost to global activity that China was expected to provide is not materializing," he added.

Spain's selective Ibex-35 stock market closed down 138.60 points on Tuesday, down 1.44%, to 9,502.90 points, marking its biggest drop since July 6, when it shed 2.12%.

In the banking sector, Santander lost 2.29%, BBVA fell 2.91%, Caixabank gave up 0.35%, Sabadell fell 2.10%, Bankinter dropped 1.09% and Unicaja Banco rose 0.09%.

Among the large non-financial stocks, Telefónica fell 1.29%, Inditex dropped 1.35%, Iberdrola fell 1.67%, Cellnex fell 1.53% and the oil company Repsol lost 1.40%.

(Information by Matteo Allievi; edited by Benjamín Mejías Valencia)